The social and economic impact of mining in the Brits area of Madibeng Municipality, South Africa
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Date
2017
Authors
Pelo, Herbert Leburu
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Abstract
Mining has a potential to contribute to economic growth of any country. Mining deposits in
the South African Bushveld region can benefit the entire country. There are reserves for
PGM’s and Chromate. Mining conglomerates have over the years earned profits from mining
operations in the region. South Africa has the most unequal society in the world. The poverty
levels remain very high. The mining sector remains the most unstable sector with labour
unrest due to salary disputes or demand for better working conditions of service in the last 5
years which affects production and ultimately revenue. With mining being a mostly export
market, the price of commodities are affected by the continuous fluctuation of the local
currency (Rand).
The Social Labour Plans (SLP) approved by Department of Mineral Resources as part of
mining licence applications are not fully adhered to by the mining companies. Mining
communities and mining companies continue to have strained relationship due to mining
companies not keeping up to their promises contained in SLP. The communities embark on
marches that halt production demanding employment and infrastructure development from
the mines. The mining communities still live in terrible environments with a need of basic
services.
A desktop analysis was done by collecting data and by using qualitative and quantitative
methods to evaluate conduct of mining companies. The affected areas were visited and
observations were made on developments in immediate affected places. Mining is governed
by regulations such as Mining Charter, Mineral and Petroleum Resources Development Act
(MPRDA), environmental laws and most belong to the Chamber of Mines all of which
encourage and support Corporate Social Responsibility (CSR) to the communities mostly
affected by their mining operations. Mining companies contribute a minimum towards CSR
and maximise their profit. All the mining companies must create a single trust which they will
donate funds into. The trust must be used to fund infrastructure development in the Brits
area. Mining management must be held accountable for their failure to deliver on their SLP
in line with relevant SA legislation.
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MBA
Keywords
Mineral industries -- South Africa. Mine valuation -- South Africa. South Africa -- Economic conditions.